Hex Trust says it has received in-principle approval from the Monetary Authority of Singapore for a Major Payment Institution License.

This has been a multi-year process for the custodian, but will be well worth it as regulation is the future, its CEO Alessio Quaglini said in an interview.

Crypto custodian Hex Trust announced on Wednesday that it has received in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution license.

Major Payment Institution licenses allow firms in Singapore to conduct multiple payment services and deal with Digital Payment Tokens (DPTs). The licensing regime was created under the Payment Services Act of 2019, and was updated in April 2024 to include custodial services for DPTs.

MAS’ license has been one of the gold standards for crypto licenses in Asia, with many major crypto firms vying for it, such as BitGo and Ripple.

Alessio Quaglini, the CEO and co-founder of Hex Trust told CoinDesk in an interview that the space for unlicensed crypto entities operating in a gray area is shrinking, and licensure is an eventuality for any serious player in the industry.

“Companies, at a certain point, very soon, will really need to make a choice. Do I want to be on the white part of the spectrum, in the right, obtain all the licenses, and operate a completely regulated business? Or do I want to be on the other side of the spectrum, outside of regulation?” he said during an interview with CoinDesk.

Quaglini said that getting to this stage in MAS’ licensing process was a multiyear process that began in 2020. Despite the expense and effort required, it’s well worth it for the firm.

“The commitment for us is clear. We want to be on the right side of the spectrum. We are committed. We want to be compliant. We want to get the licenses in the key jurisdictions,” he said.

This announcement follows Hex Trust’s recent success in expanding its licenses in Dubai, which now permits its markets arm to offer comprehensive Virtual Asset services, including acting as a broker-dealer and regulated Staking Services, it said in a release.

In May, Hex Trust launched USDX, a native stablecoin on the Layer-1 blockchain Flare.